According to blockchain analytics firm Chainalysis, AI-powered cryptocurrency scams are predicted to become a major threat in 2025, with fraudsters increasingly leveraging artificial intelligence to enhance their deceptive tactics. The report highlights how AI is being used to create more convincing impersonation scams, particularly in “pig butchering” schemes where scammers build trust with victims before convincing them to invest in fraudulent crypto projects. AI tools are enabling scammers to generate more authentic-looking profiles, produce convincing deepfake videos, and craft personalized messages in multiple languages. The technology is also being used to automate conversations and create sophisticated scripts that make it harder for victims to detect fraud. Chainalysis notes that while cryptocurrency-based crime reached $20.6 billion in 2023, the integration of AI in scamming operations could significantly increase this figure. The report emphasizes that AI is making it easier for less skilled criminals to execute complex fraud schemes, potentially leading to a surge in cryptocurrency-related cybercrime. Key concerns include the use of AI-generated content to impersonate legitimate cryptocurrency projects and financial advisors, as well as the automation of scam operations at scale. The firm recommends increased vigilance from both investors and cryptocurrency platforms, suggesting that AI detection tools and enhanced verification processes will become crucial in combating these evolving threats.